The United Kingdom and Germany have advanced their defence industrial partnership, building on the Trinity House Agreement signed in October 2024.
A recent meeting between the UK and German defence ministers at RAF Lossiemouth marked the one-year anniversary of the accord and outlined significant new investments and collaborations. For the UK defence supply chain, the most direct outcome of this strengthening relationship is a commitment from German companies to invest £800 million into the UK defence industry over the next decade. This investment is projected to create 600 skilled jobs and is already materialising through the establishment of new manufacturing and technology facilities across the country, presenting clear opportunities for UK-based suppliers and sub-contractors.
A central component of this industrial investment is Rheinmetall’s new factory in Telford, which will re-establish a sovereign UK capability for manufacturing artillery gun barrels for the first time in a decade. The project specifies the use of British steel, with Sheffield Forgemasters identified as a key supplier, demonstrating a direct integration with the domestic supply chain. Further foreign direct investment includes Helsing’s establishment of a new maritime glider drone factory in Plymouth, supported by a wider £350 million investment in artificial intelligence. Additionally, ARX Robotics is investing £45 million in a new facility for uncrewed systems, creating 90 jobs, while Stark is opening its first non-German drone manufacturing facility in Wiltshire, which will employ 100 people. These projects signal a strong demand for expertise in unmanned systems, AI, and advanced manufacturing.
Beyond these immediate investments, the deepening UK-German partnership provides a framework for future collaborative procurement and development programmes. Plans for a joint purchase of advanced Sting Ray torpedoes have been reaffirmed, and development is progressing on a new Deep Precision Strike weapon with a range exceeding 2,000 kilometres. New agreements are also in place to enhance bridge-building equipment for land operations. These initiatives represent long-term programme opportunities for UK industry. The operational cooperation is also expanding, with German P-8A Poseidon maritime patrol aircraft set to conduct joint activities with the RAF from Lossiemouth. This will be complemented by closer collaboration in cyberspace, including the development of a secure cloud network for real-time information sharing, creating opportunities for the UK’s cybersecurity and digital technology sectors.
If you would like to join our community and read more articles like this, please click here.